International Journal of Learning and Intellectual Capital (10 papers in press)
Identification of Intellectual Capital (IC) within Micro, Small and Medium-Sized Enterprises (MSMEs): A Case Study of Cibuntu Tofu Industrial Center in Bandung, Indonesia
by Ratri Wahyuningtyas, Yuhana Astuti, Grisna Anggadwita
Abstract: As the ASEAN Economic Communitys (AEC) inception has
promoted and continues to promote deeper regional integration competition.
Indonesia, as an AEC member enjoying significant commercial potential,
represents a prospective marketplace for other ASEAN countries. Commercial
competition between micro-, small- and medium-sized enterprises (MSMEs) is
increasingly fierce because they constitute one of the business sectors that
significantly enhance Indonesias internal economic growth. Thus, MSMEs
within the country must exploit their potential more fully by, among other
things, improving their intellectual capital (IC) in order to prove competitive.
IC is one means of achieving a knowledge-based economy. This study aims to
identify the existing conditions of IC in the Cibuntu Tofu Industrial Center of
Bandung, one of the leading players in the Indonesian MSME sector. Those
conditions will be the basis of IC model design, one of the means of creating
competitive advantage. The research methodology presented here consists of
several components. The data used in this study is primary in nature, being
collected through semi-structured interviews with various respondents.
The data analysis technique employed the intellectual capital statement as a
tool to describe and evaluate IC using quantitative, qualitative and systematic
assessment and impact factors, with the results of the analysis expressed in
the IC management portfolio. These showed that there were 15 IC factors in the
Cibuntu Tofu Industrial Center. This studys results indicated that the
companys human capital component falls within quadrant two (stabilise),
structural capital within quadrant four (analyse), and relational capital within
quadrant two (stabilise).
Keywords: AEC; IC; Industrial Center; Intellectual Capital Statement; MSMEs; Portfolio Management; QQS.
Intellectual capital and organizational performance in Malaysian knowledge-intensive SMEs
by Muhammad Khalique, Nick Bontis, Jamal Abdul Nassir Bin Shaari, Mohd Rafi Yaacob, Rohana Ngah
Abstract: This study was designed to test and validate the integrated
intellectual capital model by examining the relationship between intellectual
capital and organisational performance of small and medium enterprises
(SMEs) operating in the electrical and electronics manufacturing sectors in
Malaysia. Data was collected through a validated survey instrumentalpha and confirmatory factor analysis were used to examine the reliability and
validity of the research instrument. Structural equation modelling was used to
test the proposed research hypotheses. The results demonstrate that human
capital, customer capital, structural capital, social capital, technological capital
and spiritual capital are crucial components of intellectual capital and all link to
organisational performance. Although there are limitations to measuring
intellectual capital quantitatively, this study provides further insight into the
relationship between intellectual capital and organisational performance within
a developing nation. The limitations of the study include a limited scope of
administered on a sample of 237 respondents from targeted SMEs. Cronbachs
Keywords: Integrated intellectual capital model; human capital; customer capital; structural capital; social capital; technological capital; spiritual capital; organisational performance; SMEs; Malaysia.
Determinants of Intellectual Capital Disclosure in the IPOs and Its Impact on Underpricing: Evidence from Indonesia
by Wahyu Widarjo, Bandi
Abstract: We investigate the determinants of intellectual capital (IC) disclosure in the prospectus of IPO. Going deeper, we also examine the impact of IC disclosure on underpricing. By studying 86 IPOs of Indonesian firms over the period of 2000-2014, we do find that ownership retention and underwriting portion have positive effect on the extent to which IC is disclosed. Moreover, our results reveal that IC disclosure is negatively correlated with the level of underpricing. In addition, evidence is also found that IC disclosure mediates the link between underwriting portion and underpricing.
Keywords: Initial Public Offerings; ownership retention; managing underwriter; intellectual capital disclosure; underpricing.
Intellectual Property as a key driver of business performance: The case of Singapore and its implications for innovation in a knowledge-based economy
by Mariza Tsakalerou
Abstract: While the importance of intellectual capital (IC) for organisational
value varies across the enterprise continuum, it is commonly accepted that IC
has a generally positive effect on firm performance. It has been observed in the
literature that certain variables such as the industry sector and the level of
economic development play an important mediating role on the effects of IC on
firm performance. It is thus accepted that conditions of the environment in
which a firm operates may have a tempering effect on the significance of IC for
its performance. One of the most important external factors for organisational
value is the level of intellectual property (IP) rights protection granted to
patents, copyright, trademarks, etc., in its operating environment. The case of
Singapore is a specific example of a country where the emergence of a strong
IP rights protection environment coincided with the tremendous development
of the country. But since Singapore was already one of the top locations in the
world for ease of doing business, the question remains whether its innovation
ecosystem evolved because of the IP rights protection advance. The objective
of this paper is thus to examine the degree to which an IP rights protection
system fosters an environment in which IC can be of significance for firm
performance. Preliminary second-level analysis of the aggregate results of a
meta-study of the relevant bibliography (20032013) demonstrates that the
significance of IC is severely undermined for manufacturing firms that operate
in environments with weak IP rights protection.
Keywords: Intellectual Property Rights; Intellectual Capital;Innovation Ecosystem; Singapore.
The moderating role of corporate governance on the relationship between intellectual capital efficiency and firm's performance: evidence from Saudi Arabia
by Allam Mohammed Hamdan, Amina Mohammed Buallay, Bahaaeddin Ahmed Alareeni
Abstract: This study examined the moderating role of corporate governance on the interaction between intellectual capital efficiency and financial, operational and market performance. The study used a pooled data of 171 firms listed on the Saudi Stock Exchange during the period from 2012 to 2014. Multiple regression approach was incorporated under fixed-effect method. The findings revealed that the inclusion of corporate governance as a moderating variable has influenced positively the relationship between intellectual capital components and financial, operational and market performance. In addition, only capital employed efficiency positively affects financial performance, while structural capital efficiency and capital employed efficiency positively affect the operational performance. As for market performance, it was affected positively by all the Intellectual capital components. Further, the findings showed that the larger firms, the higher level of human capital efficiency, and smaller firms, the higher level of structural capital and capital employed efficiency.
Keywords: agency theory; corporate governance; firm performance; intellectual capital; Saudi Arabia.
Evaluating intellectual capital and its impact on financial performance: empirical evidence from Indian electricity, mining and asset financing service sectors
by Karam Pal Narwal, Nisha Yadav
Abstract: This paper empirically examines the impact of the intellectual capital (IC) efficiency on the financial performance of the Indian electricity, mining and asset financing service sectors. The model value-added intellectual coefficient (VAIC) by Pulic used as a methodology to evaluate the value-added efficiency of the selected 60 companies from the Bombay Stock Exchange ranging from 2006 to 2015 on the basis of market capitalisation. The major findings of correlation analysis suggested that IC has a positive relationship with profitability and an inverse relationship with productivity. Consequently, IC has partially positive impact on financial performance and may become a path for improvement in future. The main evidence revealed that human capital has the strongest positive effect on firm value. The current empirical evidence extends concrete step towards the profound understanding the role of IC in improving performance ability of the firms and it helps the organisations to create and maintain an emulous advantage in nascent economies.
Keywords: empirical study; financial performance; India; intellectual capital; productivity; profitability; value added; value added intellectual coefficient.
Introduction of new intellectual capital disclosure framework in Indonesia
by Martin Surya Mulyadi, Yunita Anwar, Rosinta Ria Panggabean
Abstract: Intellectual capital has gained increasing attention, and its importance has been acknowledged widely including in Indonesia. Despite the importance of intellectual capital, several researchers emphasise the limitation of such studies in non-developed countries. Furthermore, the majority of prior studies on intellectual capital disclosures employ content analysis despite its weaknesses. Therefore, this research constructed an Indonesian intellectual capital disclosure framework, a framework based on data of Indonesia that may overcome content analysis weaknesses. Furthermore, this research also offers a new joint theoretical framework, intellectual capital theoretical framework, which may be useful for future intellectual capital disclosure research. This research contributes to limited intellectual capital disclosure research in Indonesia and provides valuable insights into the practice in Indonesia. This research also contributes to the development and introduction of intellectual capital theoretical framework and Indonesian intellectual capital disclosure framework.
Keywords: Indonesian intellectual capital disclosure framework; intellectual capital; intellectual capital disclosure; intellectual capital theoretical framework.
Total quality management and job satisfaction among the bank employees
by Md. Zahidul Islam, Ikramul Hasan, Md. Munir Hossain, Kim Cheng Patrick Low
Abstract: Total quality management (TQM) is one of the popular practices among management practitioners for the last two decades. Most corporations/firms, nowadays, consider TQM as a source of competitive advantage. This paper aims to investigate the relationship between TQM elements and job satisfaction. This study is a quantitative research by nature. A questionnaire was developed from the previous studies and was used in this research. Regression was adopted to test hypotheses. The results of the study reveal that three independent variables, namely teamwork, organisational culture and reward and recognition have positive and significant relationships with job satisfaction. On the other hand, no significant relationship between organisational trust and job satisfaction was evidenced. The findings of this study may contribute significantly to the development of new knowledge, and help understand how TQM elements work in the banking sector of Bangladesh.
Keywords: culture; job satisfaction; reward and recognition; team work; TQM; trust.
Determinants of intellectual capital disclosure - Indian companies
by Vandana Mehrotra, Amarjeet K. Malhotra, Ajay Kumar Chauhan
Abstract: The objective of the study is to examine the association if any, between the intellectual capital disclosure made by Indian corporates and determinant factors like leverage, ownership structure and independence of the board, sector and size of these firms. The firms taken for study are Indian companies indexed in Nifty 50, the main index of National Stock Exchange (NSE) of India. The study discloses that service sector companies have a higher level of disclosure when compared to manufacturing or industrial sector companies. The data reveals that company size is positively associated with disclosure level. Data further reveals that when heterogeneity of firms is taken into account along with time factor, companies with higher proportion of independent directors disclosed more, government-owned firms disclosed less as compared to other firms.
Keywords: companies; content analysis; disclosure; India; intellectual capital.
Knowledge management in an innovative virtual company
by Rob G. Isaac, Irene M. Herremans, Jamal A. Nazari
Abstract: Through a longitudinal case study, we examine the structure, characteristics, and team dynamics that motivate innovation within a virtual company. By determining the extent to which the knowledge management and organisational learning literatures apply to a virtual company, Flare Solutions Limited, we are able to identify unique characteristics that motivate creativity within the partners of the company. Utilising a case study and an action research approach, we found that this company integrates an interesting mix of mechanistic and organic elements within its structure to operate successfully as a learning organisation within a virtual environment. As well, the company has concretely identified and inventoried its knowledge, and other aspects of intellectual capital, permitting a clearer understanding of its operations. Our work offers a contribution as to how virtual companies can generate an atmosphere of creativity and innovation to create, preserve, and disseminate knowledge within a virtual company.
Keywords: intellectual capital; knowledge transfer; learning organisation; team dynamics; virtual company.